Many contractors and construction firm owners go through their insurance agent to find surety bonding because they are not aware of the benefits of looking to a surety specialist. In fact, some may not even be aware that there are other options since many insurers act like they are the sole gatekeepers for surety bonding services. The truth is that no insurer can offer you the comprehensive level of service and expertise that a surety bonding company can.
A surety bond is quite a different product than an insurance policy, and the financials behind them are also quite different. Your insurance provider may not grasp this level of nuance, and they may take for granted factors a surety specialist would look deeply into. For instance, companies may not be aware of financial strategies that can help raise your aggregate bonding limit.
To understand more about how a surety bonding agent can provide more help than an insurance agent, consider the following benefits:
Unmatched Surety Bonding Expertise
Foremost, a surety bonding agent completely understands their field. They have insight into the deeper levels of how surety bonds work and how they interact with the general financial ecosystem of your company, including its insurance coverage.
Too many construction companies assume that surety bonds act like insurance, for example, when in reality they act more like an automatic recovery mechanism for project owners and others involved in the contract. While insurance is there in case you need it, surety bonds are there to prove you don’t have to need them; they indicate an ability to pay if something goes terribly wrong.
This major conceptual difference can cause some confusion among those working with insurance agents to secure the bonding they need. While both insurance premiums and bonding limits are tied to a perception of “risk,” bonding limits have more to do with the financial performance of the company and its accounting practices rather than a history of incidents that would lead to an insurance claim.
Nuances like these are subtle, indicating just how much expertise counts for when securing the needed bonding products.
A Surety Bonding Company Has a Singular Focus
Another drawback to working with an insurer to secure surety bonding is that insurance companies tend to treat everything as “a package.” Much like some people just want internet without receiving cable TV offers, being pressured to “bundle” your surety bonding with certain insurance or to configure your coverage in a certain way can get overwhelming.
By contrast, a surety bonding agent can help you focus on just what you need to get approved for certain contracts or to raise your aggregate limit. We not only help you secure surety bonding, but we also work with you to complete your application for programs like DOT bonding and the SBA Surety Bond Guarantee program.
All of these services are streamlined to give clients the most control over the outcome while minimizing the effort needed.
You can learn more about how a surety bonding agent can help you and how National Surety goes above and beyond to exceed your expectations by contacting us today.